At Canadian POS Corporation, we very often hear the words “cashless society” being thrown around. It’s a term used to describe Canada. Or, to be more specific, it’s the phrase that acknowledges Canada’s distancing from the use of cash and greater acceptance of credit card and debit card use. As a result, it’s not at all surprising to see a steady decrease in the number of “cash only” businesses that are out there.
How close is Canada to becoming a “cashless society”?
Some would argue that we’re already there! But, to be absolutely fair, there are still a number of individuals who have no problems paying with cash – especially for relatively small charges. The fact remains, however, that the vast majority of Canadian consumers want options. They like having the choice of being able to pay with either cash or their credit and debit cards. Interestingly, there seems to be some merchants who don’t even feel the need to accept cash at all anymore.
David Segal is one of those business owners. The Ottawa-based entrepreneur who runs Mad Radish feels that accepting cash is no longer necessary. As Leslie Young reports for Global News, the vast majority of Segal’s customers don’t seem to mind. “There’s very few people who don’t have a debit or credit card, or both, in their wallets,” he is quoted as saying, “There’s the occasional person who doesn’t like it but the response has been overwhelmingly positive.”
Should businesses in Canada stop accepting cash?
We’re certainly not recommending it. Not yet, anyway. As we mentioned earlier, Canadian consumers want options. Cash, of course, should be one of those options. However, as Young points out, cash transactions are steadily diminishing each year. She informs that a 2013 Bank of Canada survey found that 44 percent of transactions were done in cash. It was 54 percent in 2009. Trends indicate that the percentage will continue to shrink.
Norman Shaw is an associate professor at Ryerson University’s Ted Rogers School of Retail Management. Young reveals that the professor’s smart watch is his payment method of choice. “It’s the convenience and the speed,” Shaw says in Young’s article, “The banks and the payment companies have done a very good job of putting tap-and-pay terminals everywhere, and consequently, it’s very easy to go with your credit card and just tap and pay.”
Tap and pay is changing the way businesses operate.
As many Canadians are well aware, many credit cards allow transactions that are less than $100 to be paid for using a “tap” feature that omits the PIN number process. These quick and easy transactions make paying for purchases easier than ever. Segal believes that it’s one of the most significant advancements in technology when it comes to the growth of his eatery.
Young writes that he likely wouldn’t have gone cash-free without the innovation. “It’s really been a game-changer,” says Shaw.
For information about how you can begin accepting all credit cards (Visa, MasterCard, Discover and American Express) in your store, please don’t hesitate to call Canadian POS Corporation at 1-877-748-2884 or email us at info@localhost. Be sure to ask us about our Countertop and Wireless POS terminals!